The report by Gregory Hammond, tasked by the Commonwealth Government to come up with recommendations to free up mutuals to take on a wider choice of funding options, was released on 8 November and was met with widespread acclaim by major players in the mutuals sector.The Business Council of Co-operatives and Mutuals, which represents more than 2000 co-ops and mutuals, called this "a move that will unleash opportunities for new investments in Australian business, [as] the Federal Government is signalling its commitment to long-termism, social responsibility and domestic ownership." But the BCCM warned against early celebration: "Until these changes are approved, co-operatives and mutuals cannot raise capital by issuing securities without risking the loss of their mutual status. Once they pass, member-owned businesses will be more able to make strategic investments while ensuring there is sufficient liquidity to meet any short-term obligations."However, BCCM predicts that, once the rules are changed, the sector will be "unshackled [to] allow the flow of billions of dollars of previously untapped investment to flow to Australian-owned businesses," (in the words of Melina Morrison, CEO of the BCCM).Heritage Bank was among the first individual organisations to respond to the release of the Hammond Review's recommended reforms to the banking sector. CEO Peter Lock said the changes could better position Heritage Bank and other customer-owned institutions to challenge the dominance of the four major banks."Customer-owned institutions have been hamstrung in the past because of barriers that made it difficult for us to raise additional capital to support growth," Lock said. "Access to capital is increasingly important, as all financial institutions face the need to invest heavily in digital technologies. "The Government has sent a strong signal to our members that the mutual sector has an important role to play in financial services and that we should be better supported," he said.Credit unions will also be winners, said Rob Goudswaard, CUA chief executive officer."Unlike listed companies, existing regulations do not enable mutuals to easily go out to market to raise Tier 1 capital to fund things like improved member services or to take advantage of potential growth opportunities." "At present, CUA funds these activities out of retained earnings which forces us to make choices which restrict our options. Today's announcement is a critical step towards giving us more flexibility in funding and enabling us to expand our services or pursue new opportunities - this will enable us to better compete and offer improved benefits to our members." Goudswaard said potential reforms to the tax laws, for example, could open up opportunities for many mutuals, including CUA, to utilise their franking credits for the first time. This would potentially deliver additional returns to members.The Hammond Report also contains a number of recommendations for the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority. The Treasurer has written to ASIC and APRA encouraging them to support the recommendations."CUA looks forward to further consultation on the Hammond recommendations and to working proactively working with the Federal Government, ASIC, APRA